DoD's $26.1M H-53 Aircraft Parts Order Awarded to Sikorsky Without Competition

Contract Overview

Contract Amount: $26,113,293 ($26.1M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2019-10-02

End Date: 2020-09-30

Contract Duration: 364 days

Daily Burn Rate: $71.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DELIVERY ORDER UNDER PBL CONTRACT IN SUPPORT OF DYNAMIC PARTS FOR H-53 AIRCRAFT

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06615

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $26.1 million to SIKORSKY AIRCRAFT CORPORATION for work described as: DELIVERY ORDER UNDER PBL CONTRACT IN SUPPORT OF DYNAMIC PARTS FOR H-53 AIRCRAFT Key points: 1. Significant spending on specialized aircraft parts highlights critical maintenance needs. 2. Sole-source award to Sikorsky raises questions about price reasonableness and market alternatives. 3. Lack of competition may limit opportunities for cost savings and innovation. 4. The contract falls within the broader aerospace and defense manufacturing sector.

Value Assessment

Rating: questionable

The contract's firm fixed price structure provides some cost certainty. However, without competitive bidding, it's difficult to assess if the $26.1 million price represents fair market value compared to potential alternatives or historical pricing for similar parts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This delivery order was not competed, indicating a sole-source award to Sikorsky Aircraft Corporation. This approach bypasses the competitive process, potentially leading to higher prices and reduced transparency in price discovery.

Taxpayer Impact: Taxpayers may be overpaying due to the absence of competitive pressure to secure the best possible price for these critical aircraft parts.

Public Impact

Ensures continued operational readiness of vital H-53 aircraft for military missions. Supports a key defense contractor, potentially preserving jobs and specialized manufacturing capabilities. Highlights the reliance on original equipment manufacturers for specialized aerospace components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition.
Potential for inflated costs without market comparison.
Lack of transparency in pricing justification.
No small business participation noted.

Positive Signals

Addresses critical need for H-53 aircraft parts.
Firm fixed price contract provides cost certainty.
Supports established defense industrial base.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending benchmarks in this area are often high due to specialized materials, complex engineering, and stringent quality requirements, but competition is key to controlling costs.

Small Business Impact

The data indicates this contract was not awarded to a small business, nor does it appear to have subcontracting goals for small businesses. This represents a missed opportunity to engage smaller, potentially more agile suppliers in the defense supply chain.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid is justified and that future procurements explore competitive options where feasible. Robust justification for the lack of competition is essential.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award.
Potential for overpricing.
Lack of competitive transparency.
No small business participation.
High dollar value for a single delivery order.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.1 million to SIKORSKY AIRCRAFT CORPORATION. DELIVERY ORDER UNDER PBL CONTRACT IN SUPPORT OF DYNAMIC PARTS FOR H-53 AIRCRAFT

Who is the contractor on this award?

The obligated recipient is SIKORSKY AIRCRAFT CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $26.1 million.

What is the period of performance?

Start: 2019-10-02. End: 2020-09-30.

What is the justification for awarding this contract sole-source, and were alternative sourcing strategies considered?

The justification for a sole-source award typically involves factors like unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Agencies must document these reasons thoroughly. Alternative sourcing strategies, such as market research for potential competitors or exploring different contract vehicles, should be considered to ensure the best value for the government, even in specialized areas.

How does the $26.1 million price compare to industry benchmarks for similar H-53 aircraft parts, considering the lack of competition?

Without competitive bids, establishing a precise benchmark is challenging. However, the government should leverage historical pricing data for similar parts, consult independent cost estimators, and compare against prices paid by other entities for comparable components. The absence of competition inherently raises the risk that the price may exceed what a competitive market would yield, necessitating strong internal validation.

What is the long-term strategy for procuring H-53 parts to ensure cost-effectiveness and operational readiness?

A long-term strategy should involve proactive market research to identify potential sources and foster competition where possible. This could include encouraging new entrants, exploring performance-based contracts, or negotiating long-term agreements with price adjustment mechanisms tied to market indices. Balancing the need for immediate parts availability with the goal of achieving better long-term value through competition is crucial for sustained readiness.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 6900 MAIN ST, STRATFORD, CT, 06614

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,113,293

Exercised Options: $26,113,293

Current Obligation: $26,113,293

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $1,311,500

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0038316D001F

IDV Type: IDC

Timeline